Activating Network Effects | Tango

Nowadays, most of the companies have been converting their businesses from physical to online environment. The reason of this is to:

• Enlarge the business as much as possible rather than dealing with internal community (in store) 
•  Not rely on location and trading hours 
•  Integrate the business into the world wide community network
• Increase user interface values and company side

To illustrate this more, there are four reliable types of network effects which make your business running effectively. The four elements are:

•  Direct 
•  Indirect 
•  Cross-network 
•  Local (social influence)

In this blog, I will explain those factors through a company called Tango.

Tango is a community mobile messaging, voice and video call, finding new friends, photo sharing, sharing music, playing game and animated surprise services. Currently, Tango owns more than 250 million registered members around the world.

 

Tango's Direct Network Effects

At Tango, users can make a direct video and voice call to any individual of its users after being friends. The advantage of this option is that the contact numbers are invisible, what this means is they can share and exchange business ideas in need. By activating this element, the User 2 User and / or Business 2 Business connectivity does not have to deal through the third party's contact service.

Indirect Network Effects

After being able to communicate, registered members can use the indirect service to advertise their opinion with others. Tango's three different advertising functions provided to customers are:

• Chat List Ad
• User's ads appear in the chat list, the most highly marketed location in the app

• News Feed Ad
• Member's ads appear in friends' updates which is a significant opportunity to announce anything related to your business

• Profile Ad
• A single ads can be released and changed from time to time in relation to the products and business progress

Cross-Network

For content providers and social apps, Tango offers a very high level of fundamental reach and branding impressions for their business partners. Therefor, the advantage of partnership has been rising in usage and joining new members. In very short time, Tango could attract more than 250 million people to register/use the app.

Local (social influence)

Although I am not confident in saying that Tango does or does not leverage Local Network Effects, according to their Development Partners, may be able to leverage the Local Network Effect. The platform is visible and accessible when consumers need it. Most users are influenced by the decision of at least one of their favorite and distribution channels such as Entertainment, News, Music and Funny & Cute, Sport. For instance, users can tag their interesting channel such as songs they listen to via Spotify and share it with other consumers simply.

In conclusion, I think Tango has been obtaining benefits from implementing Web 2.0 platform. The four types of network effects improved and assisted Tango to increase its users, business partners/developers and functions that provided to consumers so far. Do you think so?

Thanks for taking time to read and please leave a comment.